Value Pathways

Construction Value Pathways

The Pathways Project: Bio-pathways and Construction Value Pathways
The FPAC Pathways Program is made up of two key transformation initiatives: Bio-pathways and Construction Value Pathways. The initiatives were led by FPAC, in cooperation with FPInnovations, the Canadian Forest Service, and scores of economic and scientific experts.

The first initiative, the Future Bio-pathways Project, was undertaken in two phases from 2009 to 2011 and is a comprehensive investigation of the opportunities to produce a wide range of bio-products from wood fibre.

The second initiative, Construction Value Pathways, was launched in 2012. It identifies the key growth opportunities for the forest products industry in the construction industry now and over the next 10 years. It also provides a lens into what the future may look like for the construction industry in 20, 30 and 40 years. The future of Canada’s forest products industry will be bright if it embraces the idea of diversifying and transforming its products. Product and market diversification, and business model transformation will help the forest products industry earn more market share in the construction sector.

Canada’s forest products industry has overcome enormous challenges over the last decade. To move from surviving to thriving, the industry must internalize the message that innovation and competition will define it from now on. The $8-trillion global construction industry represents a tremendous opportunity for the forest products industry to transform itself and to continue to serve as a primary driver of Canada’s economy.

Already, Canada’s forest products industry is worth about $57 billion annually to Canada’s economy. If Vision 2020 is realized, an additional $20 billion in economic activity could be generated from new innovations and growing markets.

To take full advantage of the trends shaping the construction industry, forest products companies must transform their business models. New technology, products and processes are important, but by themselves they not enough to fully exploit the opportunities that are emerging in the global construction industry.

Canada’s forest products industry has three basic paths to choose from to gain market share in the construction sector. Companies can choose to supply commodities, to supply innovative new materials or to supply integrated solutions. Each path represents a break with the status quo. We also recommend that forest products companies strongly consider how they can work with mega-trends, such as the growth of multi-family residential homes in urban areas. No matter what path a company chooses, there must be a shift in corporate culture from surviving to thriving.

Bio-Pathways Phases 1 & 2

Phase 1: Transforming Canada’s forest products industry: Summary of findings from the Future Bio-Pathways Project
The Future Bio-pathways Project is a comprehensive investigation of the opportunities to produce a wide range of bio-products from wood fibre. The first phase of the study, released in February 2010, examined the economic, social and environmental benefits of integrating these new bio-technologies within the traditional forest products industry and it considered how this approach will boost employment and strengthen Canada’s economy and rural communities. The project was led by the Forest Products Association of Canada (FPAC), with FPInnovations, Natural Resources Canada and scores of economic and scientific experts.

To view the first phase of the Bio-pathways Project “Transforming Canada’s forest products industry: Summary of findings from the Future Bio-Pathways Project”, and other supporting material see the list below.

Phase 2: The New Face of the Canadian Forest Industry – The Emerging Bio-Revolution
The second phase of the Bio-pathways project, released in 2011, examined the global market potential of emerging bio-energy, bio-chemical and bio-products, and it explored new approaches to managing value and building partnerships in this critical area. The potential market sizes are staggering. Countries and companies with the right policy frame, the desire to foster innovation and the ability to deploy the resulting technology will be poised to grab market share in these areas and experience growth rates far above those being generated by the traditional forest product sector. This is where the action is!

To view the second phase of the Bio-pathways Project “The New Face of the Canadian Forest Industry: The Emerging Bio-revolution”, and other supporting material see the list below.